Key findings:

Sydney, Australia - 23 October 2026 – Australian small and medium-sized businesses could add up to $93 billion to Australia’s economy through broader use of artificial intelligence, according to a new report from the Tech Council of Australia.

The Accelerating AI Impact for Small and Medium Enterprises report finds only 1 in 4 Australian SMEs currently uses AI and only 5 per cent use it broadly across their operations.

The research was undertaken by Delwood Advisory for the Tech Council of Australia, with support from Employment Hero, Google and Deputy.

Average SME productivity is also 20 per cent lower than that of larger enterprises. The report estimates that an average SME moving from no AI use to broad adoption could see a productivity uplift worth $136,000 a year.

The report also draws on international research showing that 94 per cent of SMEs using AI report increased productivity.

Adoption remains uneven across Australia, with 16 per cent of regional SMEs using AI compared with 30 per cent in metropolitan areas. Adoption also varies significantly by sector, with 33 per cent of SMEs in services using AI, compared with 16 per cent in construction.

The report recommends expanding practical AI training, industry-specific guidance and advisory services, with targeted support for regional businesses and sectors with lower levels of AI adoption.

Tech Council of Australia CEO Dr Kate Cornick said helping small businesses adopt AI would be critical to Australia’s productivity and future economic growth.

“Small and medium businesses are at the heart of Australia’s economy. They employ 65 per cent of the workforce, and their ability to make better use of AI will be critical to Australia’s productivity and future economic growth.

“Our research shows the scale of the opportunity. Broader AI adoption by small businesses could add up to $93 billion to Australia’s economy. The greatest gains will come as businesses move beyond using AI for individual tasks and start applying it more widely across their operations, helping them work more efficiently, reduce costs and grow.

“Many small businesses lack the time and specialist expertise to make these changes on their own. Government and industry need to expand access to affordable, practical support that helps businesses identify where AI will make a difference, introduce the right tools and train their staff. That support needs to reach regional businesses and industries where adoption is lagging.”

Deputy CTO Ciaran Hale said, “For small businesses in hospitality, retail, healthcare and services, AI is most valuable when it helps people make better decisions in the moments that matter: balancing demand and labour costs, responding to an unexpected absence, or making sure the right person is rostered to the right shift.

“Used intelligently, it takes repetitive admin and guesswork out of day-to-day operations, while keeping human judgement where it belongs. That gives managers more time and better context to run a great shift, serve customers and support their teams.

“At scale, those better decisions can mean stronger bottom-line results and better, more resilient businesses.”

Check out the report below or click here to visit the Tech Council of Australia website and learn more about the research.

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Mat Beeche

Senior Director, Global Communications & Public Affairs, Deputy

• E. mbeeche@deputy.com